By Letsogile Baloi, CEO, Kometsi Telecommunications
Sequel to: “The $2 Million Door: How the EPC Core Blocks African MVNOs From Ever Getting Started”(medium article)
In my last post, I detailed the silent killer of African telecom innovation: a $1.5–2 million price tag for proprietary EPC/IMS core software. I called it the barrier that reserves MVNO status for foreign giants, leaving local entrepreneurs locked out.
But 2026 is different. The lock is being picked—not by cheaper licenses from Stockholm or Shenzhen, but by a fundamental shift in how we build and buy core networks.
Let’s move from the problem to the blueprint. Here are the three trends turning that $2 million door into a pay-as-you-grow subscription.
- The Rise of “Core-as-a-Service” (CaaS)
The biggest trend reshaping African MVNOs is the move from Capex to Opex. Instead of buying a full EPC core, entrepreneurs can now rent a virtual, sliced portion of a cloud-native core.
This is not theory. Homegrown platforms like Kometsi Telecommunications’ ShotiTelco Stack—built on open foundations like OpenStack—allow an MVNO to launch with operational costs instead of crippling upfront capital. Suddenly, your barrier drops from $2 million to a monthly access fee. This turns infrastructure from an obstacle into an operational expense.
- The Open-Source Verification Stack
In 2024, doubt existed about open-source cores like Open5GS. In 2026, they are battle-tested. African engineers are no longer just integrating foreign black boxes; they are productizing open cores with local OSS/BSS layers.
The result is a fully compliant, homegrown MVNO stack that bypasses the “Innovation Tax” entirely. No more currency risk on USD licenses. No more waiting for a consultant from Espoo. African developers in Nairobi and Kigali are now the architects.
- The Specific Opportunity: Nigeria’s Telecom Shake-Up
Where does this hit hardest? Look at Nigeria. With the NCC pushing for competitive licensing and 5G rollout creating network slack, there is a massive demand for niche MVNOs targeting traders, campuses, and rural co-ops.
Using a CaaS platform, a local ISP or co-operative can launch in weeks, not years. The opportunity is no longer for deep-pocketed subsidiaries—it’s for the engineer in Lagos who knows her market needs a 1TB “Market Trader” data plan.
The Only Challenge Left: Trust & Migration
The challenge is no longer technology; it’s trust. MNOs still fear security, and entrepreneurs fear downtime. We need regulators (like CA Kenya) to certify local CaaS platforms and mandate fair access.
The Bottom Line:
The $2 million door isn’t gone. But we have built a key. For the African MVNO founder reading this in 2026: stop raising for a foreign core. Start looking for an African Core-as-a-Service provider. The barrier is now a subscription.
What niche MVNO would you launch if the core cost zero?
